The author is a Forbes contributor. The opinions expressed are those of the writer.

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Too many professional athletes and entertainers end up bankrupt because as soon as they ink their first deal they become a member of an exclusive club that all-too-often robs them of their fortunes. In a nut shell, anyone who has made $250,000 for the last two years or has a net worth of $2 million dollars or more is immediately, and without consent, labeled a “Sophisticated Investor.” That puts them in a special class of investors that can be sold investments that haven’t gone through the normal SEC registration process that a company like is going through to become publicaly traded.

While the distinction can provide ground-floor opportunities in start-up companies and access to the greatest new inventions, retirees and celebrities alike can save themselves, and their families, a lot of heartache and money by simply embracing time-tested advice “If something sounds too good to be true, it probably is.” Trying to discover the next best thing or being one of the first investors in the next Apple, Wal-Mart, or Microsoft will only land you on a long list of suckers burned by shell companies or ideas gone bust.

The good news is the SEC is in the process of changing the qualifications for a Sophisticated Investors, however the reality remains, it’s an exclusive club best suited for business experts and attorneys, not people who acquired their wealth in a different arena of life.

Retirees today are faced with some of the same dilemmas that athletes and celebrities are forced to deal with such as how to manage their nest egg for several decades, who to trust, and how to avoid investment traps. By understanding that career skills and talents may not transfer into successful investing, holding their advisor accountable, and keeping their investments simple instead of sophisticated, retirees can better prepare to watch their wealth grow instead of rapidly evaporate.